Understanding Business Law and It’s Importance in Commercial Dealings

For any business owner, having the right information is key to the success of the company. This means equipping yourself with basic knowledge of business law to help you make informed decisions, avoid breaching contracts, protect your employees, customers and stakeholders, and knowing the right resources to manage disputes.

Business functions much like the life of a person, in that, from the inception throughout its existence it undergoes and engages in so many things. That’s why laws and legislations are there to regulate those activities and ensure a conducive competing environment for all industry players.

Most of these business activities will involve entering into contracts — which are legally binding. This another reason why it’s important to have foundation information on business law because you need to know what you getting into and always looking to negotiate for better terms.

The contracts and agreements could involve the stakeholders, customers, employees, suppliers and any party the engages in the public of private business. Balancing all these interests is not easy for a business and a lot of legal issues could stem from possibly anywhere, in-or -outside your business.

Fortunately, these issues are not a concern for most businesses that seek legal help from experts, business lawyers. Hiring a business lawyer can help you avoid making the wrong decisions that could lead to legal pursuits and dent the image of your business. This is your to-go person on all matters:

  • Tax laws
  • Trust and Estates
  • Shares
  • Contracts
  • Dissolution and Bankruptcy
  • Income tax
  • Intellectual property
  • Pensions and benefits
  • Labor and employment laws
  • Securities laws, among others

Business laws are what bring sanity in commercial dealings. All these activities need to be controlled to make it easier to predict business performance. For instance, suppose you’re to enter a partnership with someone or another business. Without proper, predictable laws that govern partnerships, it will be very hard to determine what you’re getting into and perhaps hesitate to make a decision.

Without these laws, it would be risky to enter a partnership with just about anyone to avoid potential legal problems. This goes to other business activities such as sales — you wouldn’t want to supply goods or render service without an established mechanism of forcing your retailers for payment. That’s why it’s important to work with a business attorney, who can help you enforce the contracts and agreements engage in.

Understanding your business rights can help you have an added advantage over other business: Here are two other scenarios of what that is important.

  • Options you have when it comes to replacing an employee
  • What happens when an employee gets injured while working, who’s liable?

All these concerns are addressed by business law and finding the right lawyer can keep your mind at peace. However, you need to know that there are two types of business lawyers: litigators and transactional lawyers.

Litigators

These are basically business lawyers who specialize in trial work and managing disputes that end up in court. Litigators function pretty much the same as civil trial attorneys, the only difference is that they purely handle business issues and not anything criminal or personal. A business litigator will engage you in every step of the way from drafting legal documents to preparing legal claims and appearing in court on your behalf.

Transactional lawyers

On the other hand, transactional lawyers are experts on business contracts. They help draft, review and negotiate contracts to ensure you get the best deal possible. This lawyer can also advise you on specific things such as licensing and leases, and ensuring that the relevant authorities are furnished with the right documents. You get to avoid issues with the IRS and the SEC, which can be a thorn in your operations.

So, we can see just how important business law and lawyers are to the business environment. For business owners — whether a manager or supervisors, having this knowledge will create a conducive environment to propel your business to the next level.